Eni has launched exclusive talks with investment fund Ares Alternative Credit Management to potentially sell 20% in its low-carbon energy business Plenitude, which has an enterprise value of over $13.4 billion (12 billion euros), the Italian energy giant said on Thursday.
“The agreement follows a thorough selection process involving several prominent international players who expressed strong interest in the company, further confirming the great appeal of its business model and its growth prospects,” Eni said in a brief statement.
At the end of 2023, Eni agreed to sell 9% in Plenitude to Energy Infrastructure Partners (EIP). Plenitude is active in the market of power generation including renewable energy sources, the sale of energy and energy solutions, and an extensive network of EV charging points.
For years, Eni has been taking a different approach to conventional and green energy development, unlike any of the other major international oil and gas firms. The Italian major is divesting or creating joint ventures to operate oil and gas assets internationally while grouping some low-carbon initiatives and projects into separate firms.
Eni says that its so-called ‘satellite model’ of managing various divisions is based on creating separate entities that can independently access capital markets to finance their own growth and be suitable for specialized investors.
“By being open to new investments, the satellite model allows us to reduce the capital absorption required to support new businesses, while safeguarding shareholder remuneration, which continues to be fed by the Free Cash Flow generated by traditional activities,” the Italian energy group says.
Francesco Gattei, Chief Transition & Financial Officer, Chief Operating Officer, and General Manager of Eni, notes that “satellites are the way we solve the energy transition equation, by managing new and traditional businesses and growing in both while ensuring continuity and security of sources, the availability of financing while pursuing all our business objectives.”
By Tsvetana Paraskova for Oilprice.com
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